UK Global Associates Debt Managements Services

 

 

 

 

 

 

What is Debt Management?

 

Debt management is an informal arrangement that your customer can exit at any time, with no exit fee payable. It may be a short term fix to help with a period of unemployment, or a longer term arrangement to help customers where their circumstances have changed and they can no longer afford their current commitments.

 

Debt Management Plans, which are known as DMPs for short are an effective way to get your finances back in order. They allow you to pay what you can afford though a flexible plan that adapts to your circumstances. They are not legally binding and are usually for debts up to £15,000. For larger debts, an Individual Voluntary Arrangement (IVA) or Trust Deed (for Scottish Residents) may be more appropriate.

 

How do we help you?

 

We will take the stress and hassle of dealing with these bills away. Our experienced team of Customer Account Managers will provide you with a tailor made solution specifically designed to fit their individual circumstances.

It's simple; you pay an affordable amount each month. We deduct our fee and disperse the difference to the creditors. We will negotiate with your creditors, and where possible reduce or freeze interest and charges.

 

How a Debt Management Plan (DMP) Works?

 

Following an in depth financial assessment, we will contact all of your creditors (the companies to which you owe money) to find out what exactly you owe. We will also assess what you can afford to pay based on your income and expenditure, this amount is known as your disposable income (DI). This is what you will pay into your Debt Management Plan regardless of what you owe.

 

What do we charge?

 

We charge an initial fee of 2 months of the client's disposable income; followed by a monthly fee of 11%, with a minimum of £40 and a maximum of £90.

 

 

Benefits of a Debt Management Plan (DMP)

 

A Debt Management Plan will:

• Combine all your unsecured debts into a single monthly payment based on your circumstances

• Depending upon the outcome of negotiation with your creditors, reduce or freeze interest and charges on what you owe

• Give you someone who understands and has a good relationship with the creditors who can deal with them on your behalf

• Allow you to pass all creditor correspondence to us to deal with. You should never ignore creditor correspondence

• Put you back in control of your finances so you know where your money is going each month

 

 

Potential drawbacks of a Debt Management Plan (DMP)

 

Debt Management Plans are not for everyone, you are best to seek advice form a professional if you are unsure. You should be aware that a Debt Management Plan may:

 

• Extend your payments over a longer term in some cases

• Increase the total sum to be repaid

• Not always result in the reduction of interest or charges for every creditor

• Not necessarily stop all correspondence or phone calls from creditors

• Not cover any debt secured on assets or tax arrears

• Damage your credit profile or result in lenders registering defaults

• Result in additional arrears at the outset due to paying our set up fees and there being insufficient available money to pay your creditors.

• Should you stop making payments to your DMP your creditors may recommence a more intensive collection process to recover arrears. They may no longer freeze interest and charges where applicable

 

 

What if you decide that you don't want to go ahead?

 

You are provided a cooling off period of seven days from the date you sign the terms of business during which you may cancel the agreement at no cost. After this time, should you give notice to us that you would like a refund of a payment, or payments, (being other than the initial fee) then where no distributions have at that time been made by us, or are in the course of being made by us on your behalf, a full refund of the undistributed funds will be made. Where we have commenced distributing funds on your behalf, we will refund undistributed payments less our 11% management fee.

 

Will your credit be affected?

 

This will depend on the state of your credit at the start if you are currently missing payments you may have already damaged your credit profile. Most people who enter debt management, IVA’s Trust Deeds, full and final settlements etc. either have already severely damaged their credit profile or will do so anyway due to not having the ability to continue making the full payments to their creditors.

 

If you take out one of these products/solutions it is likely that your credit file will be adversely affected, especially if your credit profile is good at the start of the plan. Whilst we negotiate with lenders to stop action, lenders may still continue collections action including default notices and litigation and there is no guarantee that any threatened proceedings or actions will be withdrawn or lenders associated costs cease to be added.

 

Any adverse credit on your credit file could affect your ability to borrow and the choice of lenders available to you. In particular you may have difficulty borrowing in the short term and there may be a longer term impact depending on how your credit file is. IVAs, Trust Deeds and Bankruptcy will have a more severe impact on your credit profile and failure to maintain an IVA or a Trust Deed could lead to Bankruptcy. If you are already in arrears on your credit, the impact on your credit report will be less severe. If your credit profile is good you should also explore getting a loan if this might help you to reduce the cost of your borrowings. Our associated company Promise Solutions are experts in arranging loans for people who struggle to obtain loans through conventional sources. Please ask if you require further information.

Please remember the importance of maintaining payments on important debts such as your mortgage, rent and utility payments

 

Do not ignore correspondence or contact from your creditors or their agents unless someone is dealing with this for you, in which case pass on any information quickly.